This archive report was first published on 1 July 2020.
On July 1, 2020, the Kenya Deposit Insurance Corporation (KDIC) implemented measures to safeguard depositors' funds in regulated commercial banks.
One of the key measures is the increase in the deposit insurance coverage limit from KSh100,000 to KSh500,000. This move reflects the sustained growth in the economy and provides more protection to depositors in the unlikely event of a bank failure.
Additionally, KDIC has extended the payment of annual premiums for six months as a relief to banks during the COVID-19 pandemic. The premiums, which were originally due in July 2020, will now be payable by the end of December 2020.
Furthermore, the corporation has deferred the risk-based premium model, which was scheduled to take effect in July 2020, by one more year. This decision was made to mitigate the impact of the pandemic on banks' cash flows.
According to KDIC, the measures are designed to protect depositors' funds and ensure the banking system remains safe and secure.
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